Oregon DOT Awards $26M Highway Betterment Contract to Tapani Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $26,005,604 ($26.0M)
Contractor: Tapani Inc.
Awarding Agency: Department of Transportation
Start Date: 2010-06-04
End Date: 2012-11-26
Contract Duration: 906 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Transportation
Official Description: OR FS ERFO 2007(1)-11(1), HIGHWAY 35 BETTERMENT
Place of Performance
Location: MOUNT HOOD PARKDALE, HOOD RIVER County, OREGON, 97041
State: Oregon Government Spending
Plain-Language Summary
Department of Transportation obligated $26.0 million to TAPANI INC. for work described as: OR FS ERFO 2007(1)-11(1), HIGHWAY 35 BETTERMENT Key points: 1. Contract awarded for highway infrastructure improvements in Oregon. 2. Significant investment in transportation infrastructure. 3. Fixed Price with Economic Price Adjustment contract type. 4. Competition method was full and open, suggesting potential for competitive pricing.
Value Assessment
Rating: fair
The contract value of $26M for highway construction appears within a reasonable range for a project of this scope. Benchmarking against similar DOT projects would provide a clearer assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to more favorable pricing for the government. The number of bids received (12) indicates a healthy level of interest.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure improvements, with the competitive process aiming to ensure efficient use of these funds.
Public Impact
Improved transportation infrastructure enhances economic activity and public safety. The project directly impacts users of Highway 35 in Oregon. Investment in infrastructure can create jobs and stimulate local economies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns if material prices escalate significantly.
- Contract duration of 906 days suggests a complex project with potential for delays.
Positive Signals
- Full and open competition indicates a robust bidding process.
- Award to a single contractor simplifies management and execution.
Sector Analysis
Highway construction is a critical sector for national infrastructure. Spending benchmarks vary widely based on project scope, location, and materials. This $26M contract falls within the typical range for significant road improvement projects.
Small Business Impact
While the prime contractor is Tapani Inc., the contract details do not specify any subcontracting goals or participation by small businesses. Further investigation would be needed to determine small business involvement.
Oversight & Accountability
The Department of Transportation, specifically the Federal Highway Administration, is responsible for overseeing this contract. Standard oversight mechanisms for construction projects would apply, including progress monitoring and quality assurance.
Related Government Programs
- Highway, Street, and Bridge Construction
- Department of Transportation Contracting
- Federal Highway Administration Programs
Risk Flags
- Potential for cost escalation due to economic price adjustment.
- Long contract duration increases risk of delays and unforeseen issues.
- Lack of explicit small business participation noted.
- Contract type (Fixed Price with EPA) requires careful monitoring of price indices.
Tags
highway-street-and-bridge-construction, department-of-transportation, or, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $26.0 million to TAPANI INC.. OR FS ERFO 2007(1)-11(1), HIGHWAY 35 BETTERMENT
Who is the contractor on this award?
The obligated recipient is TAPANI INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Highway Administration).
What is the total obligated amount?
The obligated amount is $26.0 million.
What is the period of performance?
Start: 2010-06-04. End: 2012-11-26.
What is the projected economic impact of the Highway 35 Betterment project on the local region?
The Highway 35 Betterment project is expected to stimulate the local economy through job creation in construction and related industries. Improved transportation efficiency can also reduce business costs and attract new investment, leading to sustained economic growth in the region.
What are the primary risks associated with the economic price adjustment clause in this contract?
The main risk of the economic price adjustment (EPA) clause is that unforeseen escalations in material costs (e.g., asphalt, steel, fuel) could significantly increase the final contract price beyond initial projections. This could lead to budget overruns and a reduced return on investment for taxpayers.
How effectively does the full and open competition process ensure value for money in highway construction contracts of this magnitude?
Full and open competition is generally effective in ensuring value for money by encouraging multiple bidders to offer competitive pricing. The 12 bids received suggest a competitive market for this project, likely driving down costs. However, ongoing oversight is crucial to ensure the contractor delivers quality work within budget and schedule.
Industry Classification
NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Solicitation ID: DTFH70-09-B-00019
Offers Received: 12
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 1904 SE 6TH PL, BATTLE GROUND, WA, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,005,604
Exercised Options: $26,005,604
Current Obligation: $26,005,604
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-06-04
Current End Date: 2012-11-26
Potential End Date: 2012-11-26 00:00:00
Last Modified: 2013-07-16
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